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Trading The SPI - NON-Gann Techniques
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I'm talking change in less than 12 months tho TF, not 4 yrs
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hi tree frog,
there is a gap fill down at 5493 to be aware of.
ac
there is a gap fill down at 5493 to be aware of.
ac
Trembling Hand
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treefrog have you ran you system against cash market only data? Just wondering as I find the SYCO(M) data so thin and noisy its only value is mild interest in the highs, lows and of course close?
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nope TH haven't
this is thin and one of the reasons I mostly use 1hr charts - often do pay extra than quoted when cashing out
much more hurtful on the 2/5min scale where they obviously over-run the market to take out your stops if you are silly enough to set them
bottom line is I have extended periods when I don't trade for various reasons and am reluctant to commit to another paid service - ya get what ya pay for and this one is free - pay for a separate forex feed though with o/s provider
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y'day mkt open zone momentum was in neutral, hence the up/down arrows meaning no clear indication
small kick down (red dash line) was just noise and any trade needed to be off the 50% fib level where it was sitting
momentum UP established after open so don't trade short before this is broken
did not trade this system yesterday due to poor indication at open
today clear we had another (blue) fib run and retrace levels - 5600 confluence area significant (yellow 23% and blue 50%) giving S/R zone agrees with acouch roadmap above
momentum down signal in tact this morning plus break in yesterday's price uptrend = OK to trade down this morning but not up before momentum breaks
distracted, so post is hour behind action atm - down signals still good but too late to enter now (higher risk due to less momentum)
small kick down (red dash line) was just noise and any trade needed to be off the 50% fib level where it was sitting
momentum UP established after open so don't trade short before this is broken
did not trade this system yesterday due to poor indication at open
today clear we had another (blue) fib run and retrace levels - 5600 confluence area significant (yellow 23% and blue 50%) giving S/R zone agrees with acouch roadmap above
momentum down signal in tact this morning plus break in yesterday's price uptrend = OK to trade down this morning but not up before momentum breaks
distracted, so post is hour behind action atm - down signals still good but too late to enter now (higher risk due to less momentum)
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Trembling Hand
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Will be interesting to see if the pattern of the last few weeks hold for end of week.
Its been down hard in the morning and run back up in the arvo.
Its been down hard in the morning and run back up in the arvo.
professor_frink
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nikkei and kospi are starting to find a bit of momo on the long side this morning leading up to the HK open. The only thing I can think of that might throw a spanner in the works for a rally this arvo is if we get a little bit of profit taking ahead of the long weekend- the recent run up has been pretty good, and the markets aren't exactly stable so some of the longs might wanna lock in some profit
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Hi All,
I have some noob questions on the spi I've had trouble finding elsewhere.
When you purchase a spi futures contract, is that converted into the physical purchase of shares in the XJO? Is this also why the futures often trade higher than the underlying index, because of the cost of carry? I.e. The financing costs of purchasing those shares.
How is the value of the index calculated? If a point is worth $25, and let's say the index is at 5000 (=$125k), what does that figure actually represent? Is it somehow related to the total value of all the stocks in the index?
Cheers,
Julian.
I have some noob questions on the spi I've had trouble finding elsewhere.
When you purchase a spi futures contract, is that converted into the physical purchase of shares in the XJO? Is this also why the futures often trade higher than the underlying index, because of the cost of carry? I.e. The financing costs of purchasing those shares.
How is the value of the index calculated? If a point is worth $25, and let's say the index is at 5000 (=$125k), what does that figure actually represent? Is it somehow related to the total value of all the stocks in the index?
Cheers,
Julian.
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I'm still looking for a short opportunity when we get around 5554
TH Any chance of more info by what you mean about angry buyers? and why you believe this?
Boy oh Boy there was some angry buyers today. Don't tell me I didn't warn you
TH Any chance of more info by what you mean about angry buyers? and why you believe this?
Scrap that. I've found answers to most of my questions.
No they're not converted into physical shares.
Index value is total market cap divided by constituents, which I assume is the number of outstanding shares.
Don't know why a point is worth $25.
I thought the difference between the underlying index and the futures price had something to do with the cost of carry but I don't get that anymore because the SPI is cash settled.
Don't know if any of you follow Steenbarger but he gave a webinar on market delta last week. The first 20mins or so though is on the process of learning to trade which I found quite interesting. I know you guys are probably beyond this phase but maybe you'll get something out of it. Unfortunately the audio is pretty bad.
http://ioamt.com/media/videos/brett/brettapril24/brettapril24.html
Cheers,
Julian.
No they're not converted into physical shares.
Index value is total market cap divided by constituents, which I assume is the number of outstanding shares.
Don't know why a point is worth $25.
I thought the difference between the underlying index and the futures price had something to do with the cost of carry but I don't get that anymore because the SPI is cash settled.
Don't know if any of you follow Steenbarger but he gave a webinar on market delta last week. The first 20mins or so though is on the process of learning to trade which I found quite interesting. I know you guys are probably beyond this phase but maybe you'll get something out of it. Unfortunately the audio is pretty bad.
http://ioamt.com/media/videos/brett/brettapril24/brettapril24.html
Cheers,
Julian.
Trembling Hand
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All futures have a multiplier. If its a commodity it will be a physical amount. Like gold 100 ounce for the main or 50 for the mini. An index has to have a multiply to give it a standard value. That is all. All index Futures just have an arbitrary multiplier somewhere between $5 and $50 per tick.
If you have to have a figure to liken it to the index it looks like this,
Spi value (5500) X $25 = $137500 Which is equal to $137500 of stocks weighted as per the XJO index.
